AKAM rising wedge broken...

B

bearwatch

but not confirmed just yet unless it's a straight way down.

<a href="http://torero.vecino.com/modules/wordpress/index.php/archives/2006/10/10/watching-akam-rising-wedge-for-a-short-entry/trackback/" border="0"><img src="http://torero.vecino.com/trading-charts/watching-AKAMAI-rising-wedge.jpg" alt="AKAM rising wedge" title="AKAM rising wdge"/></a>
 
Quote from bearwatch:

but not confirmed just yet unless it's a straight way down.

<a href="http://torero.vecino.com/modules/wordpress/index.php/archives/2006/10/10/watching-akam-rising-wedge-for-a-short-entry/trackback/" border="0"><img src="http://torero.vecino.com/trading-charts/watching-AKAMAI-rising-wedge.jpg" alt="AKAM rising wedge" title="AKAM rising wdge"/></a>
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Unless you're going to have modest position size, you might want to consider waiting for a failed re-test of the break, partially enter, find yourself a neckline, and load the boat once green.

Somebody held/endured/accumulated sideways stock for a "long" period of time. It wasn't the market maker, and it wasn't for a scalp.

Attached is a chart. I cannot find evidence of a reverse split and insiders recently owned 10% of the float.
 

Attachments

slowdown,

I use swingtracker (@ swingtracker.com).

efficiency,

I plan to wait for the confirmation, not taking a position just yet. I want to make sure it goes down at 3% before getting in. Target is around 40 if it does hit more 3% below the line. It's a tough call I know but I trade wedges often.
 
Quote from bearwatch:

slowdown,

I use swingtracker (@ swingtracker.com).

efficiency,

I plan to wait for the confirmation, not taking a position just yet. I want to make sure it goes down at 3% before getting in. Target is around 40 if it does hit more 3% below the line. It's a tough call I know but I trade wedges often.
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No argument a rising wedge is a bearish pattern.

However, the S&P has been in a softer wedge since 2003.

There are such things as headfakes to shakeout low hanging fruit to pick up inventory. I'll call your attention to the one trick pony RIMM. It was $63 August 1st. $86 two weeks ago Thursday. Where's it at now?

How many days short interest to cover?

Trend breaks generally re-test (and either penetrate or fail)

You might want to consider using a 3-10 SMA osccillator with a 16 SMA average of IT. The slow 16 crosses below zero.......BUT.........you're looking for the faster 3-10 ABOVE zero and rolling over. In essence the slow 16 is leading and you're entering on ending divergence. Simple not exponential MA's.

A 6 day CCI above 100.......... but a 14 day CCI repelling below zero would be a slightly less effective alternative.
 
slowdown,

Yes very good service for swing trading, they plan to roll out streaming this month with forex and eminis. Try it out, I think they have a 30 day trial.

jan168, 3% from the lower trendline.

efficiency, I agree wedges are tricky because it's a counter-trend play, but I plan to keep the stop tight, just above the high but the reward is more than 3:1 so I don't mind the odds. We'll have to pay to play right? I actually only use price action, patterns and volume and only one indicator: force index (volume-based) and it was showing divergence. From raw volume bars, the last few bars had less volume as it made new highs than the previous bars. So, so far so good.
 
i'm not looking for a swing-trading service -- i just noted that the chart itself looked nice. the service provides charting software? never heard of that before....
 
Quote from bearwatch:

slowdown,

Yes very good service for swing trading, they plan to roll out streaming this month with forex and eminis. Try it out, I think they have a 30 day trial.

jan168, 3% from the lower trendline.

efficiency, I agree wedges are tricky because it's a counter-trend play, but I plan to keep the stop tight, just above the high but the reward is more than 3:1 so I don't mind the odds. We'll have to pay to play right? I actually only use price action, patterns and volume and only one indicator: force index (volume-based) and it was showing divergence. From raw volume bars, the last few bars had less volume as it made new highs than the previous bars. So, so far so good.
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A tight stop, if it's a live order, telegraphs where you are and your intent.
 
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